GUIDE
Seller financing
When the seller is also the lender, and why that is a term, not a favor you should assume.
A note is part of the price
Seller financing means the seller receives some of the price over time and takes the risk that the buyer pays. It can make a deal possible when a bank will not finance the whole price. It can also mean the seller did not really leave.
The interest rate and the down payment are negotiated. We do not lend and do not document the note.
Both sides should know what is secured
What happens on a missed payment, what collateral exists, and whether a bank has a senior lien are legal and credit questions. Ask an independent professional. A blog post is not a promissory note.
If you are buying, put seller financing in the profile only as a preference you can discuss. If you are selling, the sell form asks whether you are open to financing. Open is not the same as agreed.
Questions
Should every seller offer financing?
No. It is a choice about risk and about how badly you want this buyer.
Is seller financing an SBA loan?
No. An SBA-guaranteed loan is a lender's loan. A seller note is the seller's loan. They can exist in the same deal. They are not the same instrument.